Iron County register., 1887-12-08
THE NATIONAL BANKS.

Report of the Comptroller OF the Currency
of the Operations OF National Banks DUR
ing the Last Fiscal Year, with Susges-
dons as to Amendments In the Laws Gov
erning the Same.
WASHINGTON, Dec. 2.-The twenty-fifth an,
nua! report of the Comptroller of the urren CIV
now in print, will be presented to Congress on
the first day of the session.
The report shows that the total number OF
National banks organized up to the 31st of Oc-
tober is 3,S05, OF which 62i have gone into VOL
untary liquidation, .119 have failed, leaving in
operation at that date 3,061. OF this number
8.O4e furnished reports Of condition at the date
OF the last CALL October s, of which COM
plete abstract has been furnished.
The total number Of new banks formed dur
Ing the last year is 2a5; the total number
closed during the year is SO, of which 25 went
into voluntary liquidation and failed.
The new banks comprise in New England,
80 in the Middle States, 81 in the Southern
States, 107 in the Central States and 80 in the
Western States and Territories.
OF the failed banks, was in New England,
in the Middle States, in the Southern
States and in the Central States.
The gross increase in National hank capital
during the year amounts to $36, S94, 775 of whi n
s3s6S,005 represent an increase OF capital by
banks existing November 1, 1886. There has
been, however, decrease of capital of S8, 322.-
so, of which S4,0S7, $50 is the aggregate capital
OF the thirty three banks which went into
NOiuhidiy ilQOludtlOu anu Ialleu. anu Lno re-
mainder represents a decrease of the capital
by banks still in operation.
The net increase of capital for the year is
therefore, $50, 3?5. On the other hand.
there is net decrease of ESQ 495 $50 in the cir
Scuatton represented by bonds.
The decrease resulting from the surrender OF
circulation by banks still in operation is S57,-
770,4Io, and the decrease caused by banks
going into voluntary liquidation and failing is
sl274,3so, making gross decrease of s59,G44-
S55, Offset by a total increase of SS5i9, 265
which consists OF an increase bv the formation
of new banks of s4,592, 900. an increase of cir
culation by previously existings banks to the
amount of 50, 957,175.
The affairs of five failed banks have been
closed during the year including among tn EN-
one Of those which failed during the year In
four cases out of the five the creditors have
received payment of principal and interest in
1ull and there has been q balance of assets
transferred to agent of the stockholders
In the other case, that of bank which failed
in 1879, the total dividends amount to 81 per
cent. In each case detailed account is given
OF the cause OF failure and the progress made
in liquidation.
The total amount of money paid in dividend
during the past year is S2, 106, 20341; the whole
amount paid to creditors of insolvent banks
since the system has been in operation is S29.-
43I.9SU upon proved claims amounting to s46 =
93S.3s8; the total assessments stockhol ers,
s9,9fl,25o, OF which the gross collections have
been a. 632. 500.
Very full statistics have been collected about
the State banks, savings banks, loan and trust
companies and private banks and bankers
throughout the country.
The suggestions made by the comptroller as
to amendments to the laws are in the form OF
a code revising and consolidating all existing
laws, with number of changes. each of which
is fully explained and the reasons for it are set
forth at considerable length. The most
important of the changes recommended is that
the minimum amount of bonds to be deposited
as security for circulation shall be 10
per cent. OF the capital of banks of not
over S250.o0O and $4,000 for banks of which the
capital exceeds s2500C0: also that the semi
annual duty on circulation be hereafter charged
only on the amount issued upon bonds depos.
tied in excess of the minimum amount as above.
He also recommends that the National bank
notes be counted as part of the lawful reserve
OF the banks.
The existing provisions of law as to the re-
sponsibility of officers and directors of banks
are modified so as to avoid heretofore existing
obstacles to their prompt and certain enforce.
ment.
The restriction upon banks as to making
loans in excess of 10 per cent. of capital to any
one party is modified in respect to loans upon
collateral security and the total limit is raised
to 20 per cent. of capital and surplus.
The provisions as to reserve upon deposits
are modified so as not to include Government
deposits in the amount upon which reserve is to
be paid. The provisions as to State taxation
of National banks is also modified.
The proposed code has been transmitted to
every Senator and Representative with codi-
fication of all existing laws on the subject ar
ranged in sections parallel with those of the
proposed code and accompanied by a letter ex-
planning each of the more important changes
and giving the reason therefor.